(a) A person required to hold a license under Section 521.021 shall:
(1) have in the person's possession while operating a motor vehicle the class of driver's license appropriate for the type of vehicle operated; and
(2) display the license on the demand of a magistrate, court officer, or peace officer.
(b) A peace officer may stop and detain a person operating a motor vehicle to determine if the person has a driver's license as required by this section.
(c) A person who violates this section commits an offense. An offense under this subsection is a misdemeanor punishable by a fine not to exceed $200, except that:
(1) for a second conviction within one year after the date of the first conviction, the offense is a misdemeanor punishable by a fine of not less than $25 or more than $200;
(2) for a third or subsequent conviction within one year after the date of the second conviction the offense is a misdemeanor punishable by:
(A) a fine of not less than $25 or more than $500;
(B) confinement in the county jail for not less than 72 hours or more than six months; or
(C) both the fine and confinement; and
(3) if it is shown on the trial of the offense that at the time of the offense the person was operating the motor vehicle in violation of Section 601.191 and caused or was at fault in a motor vehicle collision that resulted in serious bodily injury to or the death of another person, an offense under this section is a Class A misdemeanor.
(d) It is a defense to prosecution under this section if the person charged produces in court a driver's license:
(1) issued to that person;
(2) appropriate for the type of vehicle operated; and
(3) valid at the time of the arrest for the offense.
(e) The judge of each court shall report promptly to the department each conviction obtained in the court under this section.
(f) The court may assess a defendant an administrative fee not to exceed $10 if a charge under this section is dismissed because of the defense listed under Subsection (d).